Speaking about the turnover of funds in the Forex market, it is worth making one small clarification – the maximum activity belongs to large financial institutions. It’s about banks. The work system is a multi-stakeholder process. The first – is a trader who monitors the market by offering a choice for potentially successful investment. The second – a trustee, which manages the funds, with the «blessing» of superior «bodies». However, behind these masks, in one way or another, is the banking side, whose influence is most significant, in the formation of the market.
Since the market is primarily interested in dealing with large deals, banks are always a welcome guest. Contrary to public opinion, the role of the bank is not only to save the funds that must be stored in it, but also to manage its savings wisely. Since all doors are open to banks, there are no real restrictions on the choice of working direction. The stagnation of capital for the bank is a sure death, as it “eats” and “feeds” employees through competent investment.
Relations Between The Bank And Brokers
This kind of relationship is special. Since the broker is a link connecting several parties (clients), its type of connection with the bank can be called accumulating. This action takes place because the money, in fact, is issued by the bank. However, in order to follow the protocols clearly, the broker connects all costs together, and only then requests the amount sought.
The similar behavior allows:
- Reduce the time to perform the operation;
- Get a numerical advantage in trading.
It turns out that even if it comes to trading brokers (if there are clients), the main role still goes to banks.
Cunning, Or Need?!
Now let’s think about whose money goes to the market? Right – contributors. Such a risk is conscious, but not all customers represent the long journey their accumulations make before cherished annual interest is added to them. And the latter, as a matter of fact, are the risk fee. A risk that, in fact, if your contribution is not insured, could become your weekday reality of losing money.
Banks play a leading role in the financial turnover of the market. Their influence allows to create trends, as well as to adjust the current situation. However, even if there is a strategy and certain information costs, the degree of risk is still present.